Sam Altman, the CEO of OpenAI, has financed the largest basic income study in the United States to date through his nonprofit organization, OpenResearch. The initiative aimed to provide unconditional cash payments to individuals living below the poverty line for a span of three years.
The study involved approximately 3,000 participants, aged between 21 and 40, from Texas and Illinois, all earning under $30,000 annually. Participants were divided into two groups: one-third received $1,000 per month, while the remaining participants received just $50.
Findings indicated that those who received the larger payments experienced increased flexibility in job searching, allowing them to pursue positions that aligned better with their personal goals and values. The authors of the study noted, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values.”
One participant expressed that the cash transfer enabled them to save money, granting them the ability to be selective about job opportunities. “I don’t have to take a crappy job just because I need income right now. I have the opportunity to hold out and try and find the right fit,” they stated.
Another recipient shared their experience of taking a lower-paying entry-level job in their desired field, which eventually led to a six-figure salary within two years. They attributed their ability to take a pay cut to the financial support provided by the cash transfers, saying, “If I didn’t have the cash transfers, there is no way I could have taken that pay cut.”
The study revealed that while employment levels among recipients did not significantly differ from those in the control group, recipients tended to increase spending on basic needs such as food, housing, and transportation. The cash payments also helped cover health-related expenses like braces and treatment for alcoholism. Though the financial support initially alleviated stress, many of the health benefits were observed to diminish after two years.
Sam Altman advocates for universal basic income as a potential solution to the changing labor landscape caused by artificial intelligence and job displacement.
Note: The study was conducted by Sam Altman’s nonprofit OpenResearch, not OpenAI, as previously misstated in earlier reports.